Back in 1988, the average American household made about $27,000 a year. The average home cost around $91,600. A car payment was about $225 a month, and rent for a typical apartment was just $420 a month.
Fast forward to 2025, and things have changed a lot.
The average household income is now about $75,000. But the average home price has shot up to over $400,000. The average car payment is now around $750–$800 a month, and rent for a modest apartment can be $1,750–$2,000 or more.
Even though people are making more money, the cost of living has gone up much faster. That means everyday people are falling behind—and fast.
This isn’t just inflation. It’s a shift in how we live and what’s possible for the average person.
Here’s a real example from my own life:
When I was 26 years old, I made about $11 an hour. It wasn’t much by today’s standards, but it was enough. I had a small apartment, a reliable car with a payment, a young family, and I paid all the bills on time. We didn’t have a lot, but we made it work.
Now in 2025, someone making $20 an hour—almost double what I made—can’t do the same. Rent is too high. Groceries are more expensive. Car payments are out of reach for many. And homeownership? For a lot of people, it’s just a dream.
This trend isn’t sustainable. We’re at a breaking point where the American Dream—owning a home, raising a family, building a better life—is no longer possible for too many hard-working people.
What’s next? This trend will continue. Look at everything else happening with this country. It’s just a matter of time.
Collapse.
Keep getting ready –
Rourke
my wife and i got married in 85 and it was tough enough then, we both had good enough jobs, a good family and community and it was still hand to mouth then, i think it made us closer. i can’t imagine what it must be like for any young family trying to get started now.